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South Dakota Lawmakers Debate Tax Relief Bills
Committees consider sales tax, property tax, and mobile sports betting proposals
Feb. 6, 2026 at 4:39pm
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South Dakota lawmakers are considering several tax relief bills, including a proposal to make a sales tax reduction permanent, a bill to use mobile sports betting revenue to lower property taxes, and a measure to establish a homeowner tax reduction fund. The decisions illustrate the competing ideas on how to address property tax relief in the state.
Why it matters
Property tax relief is a major issue in South Dakota, with dozens of bills filed on the topic. The debate over how to provide this relief, whether through sales tax cuts, property tax credits, or new revenue sources like mobile sports betting, reflects the state's ongoing efforts to balance the needs of taxpayers, businesses, and the state budget.
The details
The Senate Appropriations Committee endorsed a bill to make a 2023 sales tax reduction permanent, while the Senate Taxation Committee rejected a rival bill that would have used an increased sales tax rate to reduce property taxes. The Taxation Committee instead advanced a proposal to ask voters to legalize mobile sports betting, with most of the tax revenue going towards property tax relief. Another bill would establish a homeowner tax reduction fund, though the funding source was not specified.
- In 2023, the South Dakota Legislature adopted a sales tax rate reduction from 4.5% to 4.2% with a three-year sunset clause.
- This is the third year since the tax cut that Senate President Pro Tempore Chris Karr has tried to repeal the expiration date and make the sales tax reduction permanent.
The players
Chris Karr
Republican Senate President Pro Tempore from Sioux Falls who has pushed to make the sales tax reduction permanent.
Ernie Otten
Republican Senator from Tea who called attempts to use sales taxes for property tax relief 'bad tax policy'.
Amber Hulse
Republican Senator from Hot Springs who expressed concerns about funding property tax relief through mobile sports betting, citing her father's gambling addiction.
Casey Crabtree
Republican Senator from Madison who introduced bills to capture revenue from a scheduled sales tax increase to reduce property taxes and to ask voters to legalize mobile sports betting for that purpose.
Randy Deibert
Republican Senator from Spearfish who introduced a bill to establish a 'homeowner tax reduction fund' at the state level.
What they’re saying
“We must not let individuals continue to damage private property in San Francisco.”
— Robert Jenkins, San Francisco resident
“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”
— Gordon Edgar, grocery employee
What’s next
The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.
The takeaway
This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.
